• Asymmetric information and employment: evidence from the U.S. banking sector.

      Apergis, Nicholas; Fafaliou, Irene; Stefanitsis, marinos; University of Piraeus; University of Piraeus; National Bank of Greece (Elsevier., 2016-09-22)
      The goal of this paper is to analyze and assess the role of asymmetric information for employment performance in the case of the U.S. banking industry. To this end, the analysis performs a number of methodological approaches, such as panel cointegration and long- and short-run panel causality, spanning the period 2000–2013. The findings provide evidence that asymmetric information exerts a negative effect on employment. The results remain robust after the implementation of further checks.
    • Banking development and energy consumption: Evidence from a panel of Middle Eastern countries

      Aslan, Alper; Apergis, Nicholas; Topcu, Mert; Nevsehir University; Curtin University; Nevsehir Haci Bektas Veli University (Elsevier, 2014-06-21)
      Since the late 1990s, much scholarly work has been done in the field of energy economics on the nexus between economic growth and energy consumption. Over the last decade, however, the literature has been recompiled through examining the relationship between energy consumption and a set of variables by referring to the implicit role of economic growth. Based upon finance-energy nexus, this paper attempts to investigate the linkage between the banking development and energy consumption for a panel of seven Middle Eastern countries using panel cointegration and causality techniques over the period 1980–2011. Panel cointegration results show a long-run relationship between energy consumption, income, energy prices and banking sector development indicators. FMOLS (Fully Modified OLS) results reveal that all banking sector indicators affect energy demand positively in the long-run and the impact range falls between 0.169 and 0.396. In terms of causality, there is evidence of a one way short-run relationship from banking expansion to energy consumption while long-run dynamics indicate a bi-directional feedback relationship. These results have some implications for energy and environmental policy. One main implication is that energy conservation policies may be implemented with little or no adverse impact on financial development in the short-run whereas they might become detrimental in the long-run.
    • Is CAPM a Behavioral Model? Estimating Sentiments from Rationalism

      Apergis, Nicholas; Rehman, Mobeen Ur; University of Piraeus; Shaheed Zulficar Ali Bhutto Institute of Science and Technology (Taylor & Francis, 2018-03-06)
      The authors investigate the role of investor sentiment in asset pricing. In particular, they explore whether this investor sentiment has the ability to be predicted by the residuals from the capital asset pricing model (CAPM). The analysis makes use of data for S&P500 firms on a daily basis, spanning the period of 1995–2015, as well as certain panel methodological approaches. The results suggest that the residuals from the CAPM model gain explanatory power for investor sentiment. In other words, investor sentiment is a priced factor. The implication of this finding is that overlooking the role of investor sentiment in classical finance theory could lead to an imperfect picture of describing the asset pricing.
    • The long-term role of non-traditional banking in profitability and risk profiles: Evidence from a panel of U.S. banking institutions

      Apergis, Nicholas; University of Piraeus (Elsevier, 2014-03-18)
      The goal of this empirical study is to identify empirically and on a panel basis how non-traditional bank activities affect directly the profitability and risk profiles of the financial institutions involved in such activities. Through a dataset that covers 1725 U.S. financial institutions involved in non-traditional bank activities spanning the period 2000–2013 and the methodology of panel cointegration, the empirical findings document that non-traditional bank activities exert a positive effect on both the profitability and the insolvency risk. The results could be important for regulators given they could serve as a pre-warning signal that sends a clear message to regulators about the potential systemic risk that exists within the financial markets.
    • Macroeconomic rationality and Lucas’ misperceptions model: further evidence from 41 countries.

      Apergis, Nicholas; Miller, Stephen; University of Macedonia; University of Nevada Las Vegas (Elsevier, 2004-03-27)
      Several researchers have examined Lucas’ misperceptions model as well as various propositions derived from it within a cross-section empirical framework. The cross-section approach imposes a single monetary policy regime for the entire period. Our paper innovates on existing tests of those rational expectations propositions by allowing the simultaneous effect of monetary and short-run aggregate supply (oil price) shocks on output behavior and the employment of advanced panel econometric techniques. Our empirical findings, for a sample of 41 countries over 1949–1999, provide evidence in favor of the majority of rational expectations propositions.